A construction giant who is one of the main partners behind HS2 has collapsed, with thousands of jobs at risk and infrastructure projects facing an uncertain future.

Carillion, which employs more than 20,000 people across the country, announced this morning that last-ditch talks with the government and banks had failed leaving it no choice but to enter liquidation.

The company, which has debts and liabilities of £1.5billion, has helped build and run hospitals, prisons, defence, and other facilities across the country and is an important rail contractor.

One of the biggest projects that it is involved with is HS2, which runs through Hertfordshire near Maple Cross.

Trade unions are calling on the government to take contracts back under government control, with the RMT asking the government to transfer all rail infrastructure projects to Network Rail.

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RMT general secretary Mick Cash said: "The government should be giving clear-cut assurances to the workers who are watching the Carillion crisis play out on their TV screens this weekend. They are caught in the crossfire of a financial crisis that is not of their making and Ministers should be giving them the guarantees that RMT and other unions have been demanding.

"Thousands of jobs, and a whole raft of essential services and works, are hanging by a thread this weekend and the reports that administrators and a team from Price Waterhouse are now on stand by waiting to move in comes as no surprise to the trade union as we have been through these corporate failures plenty of times before.

"RMT has called on the Government to put in place a programme that trans‎fers the rail infra-structure works over to Network Rail and which takes the out-sourced facilities work for the train companies directly in house rather than relying on these speculative chancers."

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Philip Green, Chairman of Carillion, said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

"Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the Board is very grateful for the huge efforts made by (chief executive) Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

"In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.

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"We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers."

Carillion also helped build student accommodation and sports facilities at the University of Hertfordshire in 2002, and helped build and run the Surgicentre at Lister Hospital in Stevenage.